I think the capital gains taxes rules are having their intended effect - they are keeping people from accepting Bitcoin especially on the business side. The tax compliance is too difficult.

Beyond that I think some of the runes/ordinals didn't "start out" as a government attack... but it represents more or less how I would attack the network.

The best government attack is one where the government pays miners to mine junk that keeps the hashrate high, blocks full, but bloats the UTXO set...

Or where the government directly bloats the UTXO set with OR without the arbitrary data component - the growth in UTXO set is actually what harms nodes from what I understand.

Eventually it makes nodes harder to run and with fewer nodes and more expensive hardware eventually the network will be starved of fee pressure, miner revenue, privacy, and a manageable UTXO set.

Then it just kind of... collapses or at best/worst is nerfed relative to central banks and the money printer which is the whole point anyway.

That's the approach I would take if I were government.